- Ark Investment Management, an American Investment Management Company has alerted that the collapse of FTX may lead to a domino effect in the industry.
- Ark Invest believes that the collapse of FTX has negatively impacted the name of the crypto industry. Also, we can also see it as a defeat in progress toward adoption.
A newsletter was authored by Director of Research Frank Downing and analyst Yassine Elmandijra in which Ark Invest shared its view that “the collapse of FTX is listed among the most harmful events in history ever. Not only this but also it can postpone crypto adoption by some years.”
Institutional investors have been preparing for the space for the last few years. A survey was conducted by Fidelity in which it was reported that 74% of the institution wants to purchase digital assets.
The shortage of legislation has griped the crypto industry in a regulatory gray area. Currently, there is a question from the majority that the bankruptcy may lead federal overseer to pay back.
On Friday, Senator Elizabeth Warren tweeted in which she stated that “The collapse of FTX must be an alarm for Congress and financial regulators to keep the industry and its employees liable.”
The main issue is that the SEC was unsuccessful in making regulatory clarity in the United States. As a result, many American investors went off track. The information was revealed by Brian Armstrong in a post on Twitter.
The Ripple effect is so far showing over the space. BlockFi has put a ban on withdrawals of FTX. Voyager is on the edge to end the deal to sell itself to FTX and looking for new bidders and as per Genesis, $175 million in funds were held at FTX.
The price target on Bitcoin
Wood and ARK have set a price target of $1 million on Bitcoin by the next year, remaining crypto bulls even after the recent bear markets. The company also revealed the silver linings of FTX’s death were that Bitcoin and Ethereum “have not jumped over a single beat,” and the crypto market is stressing centralized bodies that lack transparency, pushing the ecosystem toward more decentralization and transparency.
“ARK’s opinion in the long-term promise of public blockchains over money, finance, and the internet is not flickering,” the company revealed. “At a time when the crypto asset market can labor under selling pressure and liquidity troubles in the short term, we trust this issue is removing bad actors and will develop the health of the crypto ecosystem with more clarity and decentralization in the longer period.”
Source: https://www.thecoinrepublic.com/2022/11/15/ftx-bankruptcy-can-lead-to-delayed-institutional-crypto-adoption-ark-invest/